It’s been a month since Solana, an expansion set that adds a new confidential layer to asset owners and token issuers, released a confidential balance. This action is similar to the effort to improve the protection of personal information without sacrificing the necessary compliance.
Beincrypto discussed with Pat Zhang, the research director of Woo X, and analyzed how these latest developments could affect user adoption and wider solana ecosystems.
Confidential balance: Solana’s personal information upgrade
In April, Solana expanded its original special expansion under the Token2022 program. The latest development, which has been renamed with a confidential balance, upgrades the level of confidential maintenance that users can access beyond the previous confidential transmission framework.
The previous expansion set has been able to hide certain information from the public, but the confidential balance provides an enhanced set of expansion.
“Based on the initial confidential transmission function, and with the homogeneous encryption, zero knowledge evidence can be used to hide the transaction details from the public point of view and the chain can be hidden.The secret balance can hide the amount of transactions while the wallet address is noticeable. I told Beincrypto.
These features are compatible with regulatory requirements while improving chain transaction privacy. The upgrade also provides a new feature set for token issuers.
Zhang said, “Use the optional feature of the auditor, Key, a regulatory agency or compliance team, a designated entity that can decipher the transaction data when needed, and token issuers can fully configure various personal information levels in full publicly regardless of whether OPT-in or basic personal information is required.
Solana also expects to balance the enhanced personal information protection function and attract more users through compliance with regulations.
Can Solana surpass competitors in privacy?
Competitors like Ethereum have already used zero knowledge evidence to improve user personal information, but Zhang believes that Solana’s unique strengths can achieve greater adoption through confidential balance.
“Solana’s low fees, high processing amounts and configured personal information levels provide a clear advantage in both developers and retail markets. The impact of the retailer can be important. Solana’s low fees are often less than $ 0.01, and the personal information protection function is compared to ZKROLLUPS, which costs high costs of Ethereum. You can access it. “
Institutional investors are particularly beneficial when dealing with large deals.
Zhang said, “Solana’s low trading fees, about $ 0.00025 and high performance can reduce operating costs by efficiently processing large quantities through 710,000 transactions per second.
On the other hand, thanksgiving adds consumer protection class in a suspicious situation.
“Institutions that manage high school customers can run large -scale transactions through confidential transmission without causing market manipulation or leading, and the main functional functions are also provided by providing support for regulations by providing provisional compliance support by allowing the designated regulatory organizations or compliance teams to detoxify the transaction data when needed.
However, compliance with regulations can also sacrifice users who receive personal information protection above all else.
Is Solana’s approach alienation for personal information protection users?
The regulations are essential to protect users and maintain market integrity, but the focus on the confidentiality of the encryption industry can make the regulation compliance a problem.
As a result, Solana’s latest personal information protection functions can be used for users who prioritize personal information rather than compliance.
“Provisional compliance with the same functions as the emphasis on compliance, especially the audit key, can interfere with the entity that determines the priority of a complete anonymity or minimum regulatory supervisory, which aims to balance the personal information protection and regulations, so it may not be consistent with the preference of these personal information protection institutions or organizations.
Nevertheless, he believes that this will ultimately lead to greater adoption.
Early influence and future potential
Given that the confidential balance can only be used for a month, it is difficult to measure how much contributions have been made to adopt larger Solana at this stage.
Without this information, tracking major indicators is important to measure the performance of this latest function. Zhang recommended recommended tracking benchmarks such as tokens, mining, on -chain indicators and institution wallet activities.
But Zhang is carefully optimistic about the final success.
“A confidential balance seems to be an important step in Solana’s efforts to attract institutional adoption. By solving concerns about personal information and compliance with regulations, it can improve the position of Solana in Defi, Depin and Enterprise Market. And can contribute to the growth of the ecosystem. ”
The results of this initiative still remain, but they play a good expression of efforts to balance the frequent competitive demands for personal information protection and compliance.
disclaimer
In accordance with the Trust Project Guidelines, this technician presents the opinions and perspectives of industry experts or individuals. Beincrypto is dedicated to transparent reports, but the views expressed in this article do not necessarily reflect the views of BeenCrypto or its staff. The reader must independently verify the information and consult with an expert before making a decision based on this content. Our Terms and Conditions, Personal Information Protection Policy and Indemnity Clause have been updated.